You also don't have to pay state tax on income. 

This will also allow you to avoid taxes on the sale.

If the permanent financing will allow you to recover most of your initial investment and the fair market rent covers the principal, interest taxes, and insurance with cash left over, you have a BRRRR.

Tax Preparation, Tax Advisory, Accounting.

Do you get to write off all renovations on your taxes?

.$275000 with 25% down, taxes $4080, insurance is 3000 yr and rents is $3800 month, Water $400 mth. 

If you can rent it for $2,000/month, after fees, taxes, and potential maintenance costs, you’d still make a decent passive income.

And must be pretty significant unreported income if it would have caused $45k in state tax liability.You advised your client to wait past the expiration of state statute.

If you live in a state with its own income tax, you might be allowed to credit your Illinois tax against your own state’s income tax.

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.